The Court of Justice of the European Union ruled that the French electricity transmission charge (TBV) does not constitute an “other indirect tax” under Directive 2008/118/EC because it is not directly linked to the quantity of electricity consumed.
The judgment clarifies that tariff-based levies, even if passed on to consumers, fall outside EU excise duty rules when they are calculated independently of actual consumption, providing guidance for similar energy-sector charges.
EU Court Rules on Classification of French Electricity Transmission Charge
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France
Author: Vukašin Santo
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Fiscal subject related
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677
Content accuracy validation date:
12.02.2026
Content accuracy validation time:
08:35h
The Court has ruled that the French electricity transmission levy (TBV) does not qualify as an “other indirect tax” within the meaning of Article 1(2) of Directive 2008/118/EC. The decision clarifies that the TBV is calculated independently of the actual quantity of electricity consumed.
France introduced the tariff-based contribution for electricity transmission (TBV) in 2004. Accorinvest and Société Générale SA (SG SA), as final consumers of electricity, challenged the levy and sought a refund of the amounts paid. They argued that the TBV should be classified as an “other indirect tax” under Article 1(2) of Directive 2008/118/EC, which would make it incompatible with EU excise duty rules.
The French national court referred preliminary questions to the Court of Justice of the European Union (CJEU), which subsequently referred the case to the General Court.
In its judgement, the Court held that the TBV does not fall within the scope of “other indirect taxes” as defined by the Directive. A key factor in the Court’s reasoning was that the levy is not directly linked to electricity consumption, as it is calculated independently of the actual volume of electricity consumed.
The Court further emphasized that the mere existence of a legal mechanism allowing the TBV to be passed on to the final consumer does not, in itself, establish a direct and inseparable link between the levy and electricity consumption. As a result, the TBV cannot be classified as an “other indirect tax” within the meaning of EU excise duty legislation.
The ruling provides important clarification on the distinction between consumption-based taxes and tariff-based levies in the energy sector and has implications for the assessment of similar charges under EU tax law.
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